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The limit is due to the card not the reader. I'm guessing that as a 2GB card, it is formatted using the Fat file system. These have a limit on the number of entries in the root folder. It doesn't matter if it is a file or a folder. If you move everything up 1 folder, then it's fine. There is no limit within a folder. Just make a folder called eBooks and move all the folders there. Or you can reformat the card to the NTFS file system. No limit there.
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